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How to Boost Your Credit Score 90+ Points Using These Secured Credit Cards

If you are having trouble with your credit score because of lack of credit or because you have had credit issues in the past that have lowered your score, there are ways you can boost your score. The most effective way of increasing your credit score in this situation is by obtaining a secured credit card.

What Is A Secured Credit Card?

Simply put, a secured credit card is a credit card that is backed by a deposit account. You open one of these accounts by depositing money into an account that will reflect the amount of credit that you will have on your card. Some companies that issue these cards allow for 100% matching, other companies may only give you 90% of your deposited amount. Once you have established this savings account, your card will be an active credit card in every way.

You Must Make Timely Payments

Since a secured card is an actual credit card and not a debit, you must make timely payments on the account each month. All the same conditions of a credit card will apply to this card and in the same way. This means if you pay on time each month it will be reported to the credit bureaus and improve your score. However, if you fail to make these payments, this will also be reported and can impact your score negatively.

Stay On Top of Payments

It is also in your best interest to avoid late payments because there will be fees associated with these and potential for your interest rates to increase on the card. An increase in interest rates will significantly decrease the amount of credit you have available, reduce your spending abilities, and cost you more to repay your debts. Other fees associated with late payments may also be overdraft charges or over-limit fees. If possible, you should set your credit card upon auto pay so that it is always on time.

What About The Money That I Deposited?

The money that you have deposited for this account is sitting securely in a savings account. In fact, it is probably even generating a little bit of interest while it is being held. After a certain amount of time, anywhere from 1-3 years depending on the card, the money will be released to you and the card will be converted to a regular credit card instead of a secured account. Some institutions allow you just to put that money towards the balance, or you can have a check issued for the full balance.

What Else Can I Do To Boost My Score?

Using your secured card wisely and making timely payments is the best way to increase your credit score. Try to keep your balances below 30% of your available credit. So, if you have $300 deposit on the card, it would be optimal to only carry a balance of $100 on the card each month. This is after any payments you make. It is also very important that you keep all your other credit accounts in good standing while you are trying to reestablish your credit score with a secured card. Having multiple on-time payments each month is the best way to improve your overall score.

Build Credit Little By Little

A final tip for improving your credit score is to not take out too much credit in a short period of time. Many people believe that if they open up several small secured accounts at once, they will have a great credit score. In reality, having too many open or new accounts at one time makes your credit score drop. Never apply for more than three credit lines in any 30 day period, and if possible, try to refrain from applying for too many lines of credit during any 60 day period. A secured credit card is one of the most effective ways for you to rebuild your credit and boost your credit score if you manage the card correctly.

What Cards Boost Your Credit Score? 

You must know what cards boost your credit score the most when searching for ways to repair your credit, and you will find that you could take our secured credit cards that look good on your credit. You might want to take out a card with a small credit limit because that makes it much easier for you to get started. You do not need to haggle with the company over the credit limit, and you will have something on your credit score that looks good.

Why Does Secured Credit Look Good? 

Learning how to benefit from secure credit cards is much easier when you realize that secure credit looks good. A secure credit would be akin to your mortgage, and you will find that you could get many small credit cards that will help you. You could take out a couple different credit cards in this style, and they will show you what your options are when you apply. You could apply for these cards at any time, but you must choose a card that will do something for you. These cards must have amenities that make them worth your time.
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Small Rewards 

The companies that show you how to benefit from secure credit cards, and they should help you get something back for all the things that you have bought. The smallest credit cards could give you a reward in cash or airline miles. They might give you a prize for reaching a certain purchase level, or they could give you a statement credit any time you have reached a certain number of purchases. You simply need to look for the companies that offer the most and best rewards. Small rewards are better than no rewards, and you will find that you get excited to use these cards because they pay you back for the things that you buy. You might get a statement credit, or they will send you a check in the mail for your reward total.

How Long Will It Take To Repair Your Credit?

You can repair your credit in a fairly short period of time, and you will see it rise as much as 90 points in just a couple of months. You might want to keep these cards open even if you do not use them, and your credit score will rise that much more every year. You can begin to stack different cards together so that you get the right results, and you will be much happier with your credit score as long as these cards are all in good standing. You must contact the company if you want an upgrade, and upgrades could change your credit even more.

Upgraded Cards 

Upgraded cards are useful because they allow you to change the way that you approach your credit score. You will find that you could get upgraded cards that simply have more options than your regular cards, and you could use the upgraded cards to get better rewards. You must ask the carrier if they have something for you. They might move you up to something that gives you the rewards you need, or you could move to a new card that will give you more spending power. Upgraded cards could be the exact same version of a card you already have, or you could go with a card that will offer more rewards than the one you have.

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You must leave the cards open so that you can have them appear on your credit report. You must continue to use the cards open because they make your credit look good, and secured credit looks very nice. You might want to prove that you have a lifetime of credit on your record that builds from one to another, and that is why you leave all your cards open even though you have no intention of using the smaller ones in the future. You could keep the cards for emergencies, and they become a simple thing to use when you know that you need a little extra money when unexpected purchases come up.

Which Banks Do You Choose? 

The banks that you choose should give you the highest level of customer service, and they must have good credit ratings. You will find that it is much easier for you to use these cards because the company does not pass their costs on to you, and they can help you when you have questions about the card. You will save yourself a lot of money, and you will not struggle to raise your credit score. Someone who is having trouble with their credit score has to be very thoughtful about which cards and companies they use because even these companies have an impact on your credit score.

How Do You Apply? 

You can apply for these cards at any time, and you will find them online in many cases. They allow you to get instant approval online, and you can contact the company for help with the different cards they offer. You might choose a card that is better for you simply because you need something with more purchasing power, or you can start on the ground level when that is all that is available to you. You have to think very hard about when to apply, and you have to use all the right information so that you can be approved faster. Being truthful on your application is very helpful.

Conclusion

There are many companies that offer you cards like these, and you can start applying right now to raise your credit score. You can check your score as often as you need, and you will see it rise over the years. You might be in a place where you need to change your score fast, and secured cards can make that happen. They are seen as very good because of their secured credit style, and you could progress up to other different cards as your credit improves.